Applied Digital Corp. key statistics and ratios

In fiscal 2026, Applied Digital Corp. had return on equity of -22.6%, an operating margin of -38.7%, debt equal to 289.7% of equity and a current ratio of 4.01. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Applied Digital Corp.: financial ratios, annual
Fiscal year	2021May 2021	2022May 2022	2023May 2023	2024May 2024	2025May 2025	2026May 2026	LTMAug 2026
Gross margin	—	−11.2%	19.9%	10.4%	5.2%	35.1%	32.0%
Operating margin	—	−244.4%	−77.5%	−59.4%	−31.6%	−38.7%	−35.6%
Net margin	—	−275.1%	−80.6%	−90.2%	−102.2%	−40.9%	−48.1%
Free-cash-flow margin	—	−691.6%	−131.0%	−77.3%	−348.7%	−454.1%	−521.8%
Return on equity	—	−67.5%	−67.8%	−161.9%	−75.1%	−22.6%	−24.8%
Return on assets	−3.8%	−34.8%	−23.3%	−29.1%	−17.8%	−4.2%	−3.8%
Asset turnover	—	0.13	0.29	0.32	0.17	0.10	0.08
Current ratio	4.70	1.39	0.40	0.73	0.27	4.01	2.56
Debt to equity	—	11.8%	45.0%	8.1%	138.3%	289.7%	397.9%
Interest cover (operating income ÷ interest)	n/m	n/m	n/m	n/m	n/m	n/m	n/m
SG&A as % of revenue	—	233.3%	97.3%	59.1%	47.2%	54.3%	48.8%
Capital spending as % of revenue	—	681.4%	237.0%	85.6%	298.2%	468.8%	549.3%

US$ thousands unless shown otherwise. Fiscal quarters.

Applied Digital Corp.: financial ratios, quarterly
Quarter	2025 Q2Nov 2024	2025 Q3Feb 2025	2025 Q4May 2025	2026 Q1Aug 2025	2026 Q2Nov 2025	2026 Q3Feb 2026	2026 Q4May 2026	2027 Q1Aug 2026
Gross margin	37.3%	7.1%	−6.1%	27.3%	20.6%	42.5%	37.6%	28.1%
Operating margin	−35.4%	−35.8%	−86.3%	−12.1%	−24.5%	−67.6%	−48.2%	−18.2%
Net margin	−383.6%	−68.2%	−105.6%	−20.9%	−11.4%	−79.6%	−43.2%	−53.8%
Free-cash-flow margin	−617.5%	−475.4%	−374.8%	−409.5%	−448.6%	−568.7%	−447.0%	−588.2%
Current ratio	0.77	0.70	0.27	0.65	4.82	2.38	4.01	2.56
Debt to equity	—	—	136.2%	29.2%	178.9%	164.1%	288.8%	390.9%
SG&A as % of revenue	71.8%	42.9%	80.3%	36.4%	45.0%	63.0%	63.9%	33.5%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

1 of 6 checks passed · August 31, 2026

What it owns · $11.7bn

Short-term assets $4.1bnLonger-term assets $7.6bn

What it owes, and who funded it · $9.5bn

Short-term liabilities $1.6bnLonger-term liabilities $6.3bnShareholders' equity $1.6bn

Short-term assets cover short-term liabilities $4.1bn of assets due within a year against $1.6bn of liabilities due within a year.
Short-term assets cover long-term liabilities $4.1bn short-term assets against $6.3bn of longer-dated liabilities.
More cash than debt $2.9bn of cash against $6.3bn of debt.
Debt below 40% of shareholders' equity Debt is 391% of equity.
Debt burden no higher than five years ago Five-year comparison not available. Not assessable.
A year's operating cash flow covers at least 20% of debt $235m of operating cash flow against $6.3bn of debt.
Operating profit covers interest at least five times over Operating income of −$304m against $97m of interest.

From Applied Digital Corp.'s latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

8 /100

Weak moat

How hard Applied Digital's competitive advantage looks for rivals to wear away, judged from 5 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

Returns on capital 0 / 20

Net income has been a median -10.2% of total assets over 5 years.
Pricing power 0 / 20

Gross margin has been a median 16.4%, moving by 11.3 percentage points (standard deviation) across 5 years.
Durability 10 / 20

Operating margin has been a median -40.0%; its worst year was -78.9%.
Cash conversion 0 / 20

Free cash flow was positive in 0 of 5 years, at a median -451.3% of revenue.

AI disruption exposure: Medium. In this industry, AI could change how the product is made or sold, without replacing the core asset. The score above includes a 5-point deduction for that exposure (12 before it).

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

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Figures from Applied Digital Corp.'s SEC filings (10-K and 10-Q), retrieved October 20, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Applied Digital Corp.